Drilling Update

Cardinal Resources plc
08 September 2006


CARDINAL RESOURCES PLC ANNOUNCES DRILLING UPDATE
LONDON - Friday, 8th September 2006

Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an independent oil and gas production and exploration
company operating in Ukraine, today provides an update of the drilling of well #3A on the Bilousivsko-Chornukhinska
(BC) licence.



The BC #3 well was originally drilled by a Ukrainian state entity in 1957 and produced approximately 600,000 Mcf from
December 1962 to October 1968 when the well was plugged due to water influx.  An attempt to re-enter and work the well
over was made by Rudis Drilling Company in 2003 but was unsuccessful.  Cardinal acquired 100% of the BC licence as part
of the Rudis Drilling Company acquisition in October 2005.  Based on its review of the technical information, Cardinal
determined the BC #3 well should be re-drilled.



The re-drill of the new well, BC #3A, commenced in June 2006.  In early August the Visean-17 (V-17) formation was
reached at 3,000 metres.  Cardinal's evaluation showed non-commercial indications of gas in the V-17. The well was then
deepened to 3,300 metres and the evaluation of this lower interval shows the presence of three zones in the Visean
section (V-18, V-20 and V-21). No tests have been run to recover gases or liquids yet; but, based upon wireline log
analysis, these three zones appear to be hydrocarbon-bearing; and two of the zones are potentially capable of
commercial production. The well has been prepared for flow testing zones V-18 and V-20, which will take place over the
next 60 - 90 days.



The BC #3A well was drilled using a Ukrainian rig hybridized with modern drill bits and mud conditioning equipment.
The well was expected to take in excess of eight months to drill but was completed ahead of schedule, in just 76 days,
due to the use of modern equipment.



Cliff West, Executive Vice President and Chief Operating Officer of Cardinal (Member of the American Association of
Petroleum Geologists - Certified Petroleum Geologist # 1563) is the qualified person that has reviewed and approved the
technical information within this press announcement.



Glossary of Terms

Mcf                                  Thousand cubic feet of gas



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For further information please contact:



Cardinal Resources                            Parkgreen Communications
Kate Spiro                                    Justine Howarth / Victoria Thomas
[phone]                          [phone]
[e-mail]                        [e-mail]



Notes to Editor



Cardinal Resources plc

Cardinal Resources plc is an independent oil and gas company engaged in the acquisition, development, production and
exploration of oil and natural gas properties in Ukraine. Cardinal is an experienced operator in the country focused on
expanding its existing operations through the farm-in or acquisition of additional upstream oil and gas assets that can
be further developed through the application of modern technology and expertise.

Cardinal's main assets are:

Rudivsko-Chernovozavodske (RC) Field
Rudivsko-Chernovozavodske is a large under-developed gas field (1.54 TCF original gas in place), located in the
Dnieper-Donets basin, 200km east of Kiev in the Poltava Oblast.  Cardinal has a Joint Activity Agreement (JAA) with a
subsidiary of Ukrnafta for production and further development.

Bytkiv-Babchenske (Bytkiv) Field
Bytkiv-Babchenske is an oil field, located in the Carpathian fold belt, 45km south-west of Ivano-Frankivsk in the
Nadvirna Oblast.  Cardinal has a 45% interest through UkrCarpatOil, a Joint Venture (JV) with Ukrnafta, to operate and
develop the field.

Plus the following assets which were acquired as part of the Rudis Drilling Company transaction in 2005:

Bilousivsko-Chornukhinska (BC) Licence
Bilousivsko-Chornukhinska is a producing gas-condensate licence in the Dnieper-Donets basin, owned and operated by
Cardinal.

North Yablunivska (NY) Licence
North Yablunivska is a producing gas-condensate licence in the Dnieper-Donets basin, owned by Cardinal and operated
under the JAA.

Dubrivska (DB) Licence
Cardinal is currently drilling an exploration well as part of the JAA with Ukrgazvydobuvannya.

Ukrgazvydobuvannya JAA #429
Cardinal has a 50% percent interest in three wells in two other fields (Kulickykhin and Bilskie) in the Dnieper-Donets
Basin under a JAA with Ukrgazvydobuvannya.
This release may contain certain forward-looking statements.  These statements relate to future events or future
performance and reflect management's expectations regarding Cardinal's growth, results of operations, performance and
business prospects and opportunities. Such forward-looking statements reflect management's current beliefs, are based
on information currently available to management and are based on reasonable assumptions as of this date.  No
assurance, however, can be given that the expectations will be achieved. A number of factors could cause actual results
to differ materially from the projections, anticipated results or other expectations expressed in this release.  While
Cardinal makes these forward-looking statements in good faith, neither Cardinal, nor its directors and management, can
guarantee that the anticipated future results will be achieved.





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